Transfer Primary Residence into a Rental Property LLC?

[Dawnyhell Mosley]

Hi everyone!

Newbie here, I currently own a single family home as my primary residence in TX. I received a promotion at work which now requires me to move to a different city in TX.

I have a FHA loan on the property and would like to turn it into a rental property. I spoke with a real estate attorney that strongly recommended I get a property manager. She also advised the ideal scenario would be to transfer the property to an LLC to protect myself.

I'm hesitant to transfer the property to an LLC because of the following:

-triggering the “Grounds for Acceleration of Debt” clause

-upfront costs to set it up

-capital gains tax if I choose to sale the property later on (I've read that you can avoid paying taxes if you lived in the home 2/5 years before the sale. Not sure if this benefit would still apply if property transferred to an LLC.

I have also read a ton of great benefits about LLC's and love having additional protection which is why I'm torn on the issue. I would greatly appreciate some feedback. Thanks in advance and Happy New Year everyone!!

[Dawnyhell Mosley]

@Jason Allen thank you, glad to hear that my concerns are valid! Thanks for taking out the time to respond to my post.